The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1887-12-08


expenditure in the purchase of
bonds, has been already made for
the current year. so that there is no out
let in that direction. In the present state
of legislation, the only pretense of any
existing executive power to restore, at this
time, any part of our surplus revenue to
the people by its expenditure, consists in
the supposition that the secretary of the
treasury may enter the market and pur-
chase the bonds of the government not
yet due, at rate of premium to be
agreed upon.
The only provision of the law, from
which such a power could be d rived, is
found in an appropriation bill passed
NUMBER OF YEARS AGO,
and it is subject to the suspicion that it
was intended as temporary and limited in
It's application, instead of comforting a
ought to exist which would justify the
grant of power to single official upon
his Judgment of its necessity to withhold
from or release to the business of the
people, in an usual manner, money held
in the treasury and thus affect, at his will,
the financial situation of the country. If
it is deemed wise to lodge in the secretary
of the treasury the authority in the pres
emit iuncture to purchase bonds, he should
be plainly vested and provided as far as
possible with such checks and limitations
as will define his official right and discre-
ton, and at the same time relieve him
from undue responsibility.
In considering the question of purchas-
ing bonds as means of restoring to
the circulation the surplus money
accumulation in the treasury,
it should be borne in mind that premi-
ums must, of course, be paid upon such
purchase, that there may be large part
of these bonds hell rs investments which
cannot be purchased at any price, aud
that combinations among holders, who
are willing to sell, may unreasonably
enhance the cost of such bonds to the
| government.
It has been suggested that the present
bonded debt might be refunded at less
rate of interest, and the difference between
the old and new security paid in cash,
thus finding use for the surplus i'll the
treasury. The success of this plan, it Is
apparent, must depend upon the volition
of the holders of the present bonds, and
it is not entirely certain that the induce
ment which must be offered them would
result in more financial benefit to the
government than the purchase of bonds,
while the latter proposition would reduce
the principal of the debt by actual pay
ment, instead of extending it. The
proposition to deposit the money held by
the government in banks throughout
the country, for use by the
people, is, it seems TO me,
exceedingly Objectionable in principle,
establishing too close a relationship be
tween the operations of the government
treasury and the business of the country,
and too extensive commingling of theil
money, thus fostering an unnatural rell
b ance in private business upon the public
funds. If this scheme should be adopted
it should only be done as a temporary ex
pedient to meet an urgent neces
sity. Legislative and executive effor
should generally be in the opposite di-
rection, and should have tendency tt
divorce as much and as far as can safel!
be done, the treasury department from
private enterprise. Of course, it is no
OK pected that unnecessary and extravagan
appropriations will be made for the pur
pose of avoiding the accumulation of al
excess OF revenue. Such expenditure, be
sides the Generalization of all just con
ception of public duty which it entails
; stimulates habit OF reckless improvi
dence not in the least consistent with tn
mission OF our people, or the high an
, benefcient purposes of our government
1 have deemed it my duty to thus bring t
tba LODI Of frUr
q as to the attention of their representa-
! tives charged with the responsibility o
legislative relief the gravity of
e OUR FINANCIAL SITUATION.
The failure of the congress heretofor
; to provide against the dangers, which
was quite evident the very nature {
the difficulty must necessarily prodnc'
caused q condition of financial distres
and apprehension, since your last &C
iournment, which taxed to the utmost n
, the authority and expedients within execr
tive control, and these appear now to b
; exhausted. If disaster results from til
continued inacticn of congress the re
sponsibility must rest where it belongs.
Though the situation, thus far cor
sidered, Is fraught with danger whic
should be fully realized, and though
presents features of wrong to the people
as we'll as peril to the country, it is but
result growing out of perfectly palpt
BILE or apparent cause, constantly repro
ducing the same alarming circumstance
congested national treasury and deplete
/, monetary condition in the business of tn
country. 1t need hardly be stated tina
while the present situation demands
remedy, we can only be saved from lik
predicament in the future by a removal {
its cause.
Our system of taxation by the means b
which this surplus is taken from the pee
pie and put in the public treasury, COZ
sists of tariff or duty levie
upon importations from abroad, an
INTERNAL REVENUE
Taxes levied upon the consumption {
tobacco and spirituous and malt liquor
1t must be conceded that none of tt
things subjected to internal revenue tax'
ton are, strictly speaking, necessitie
There appears to be no just complaint {
taxation by consumers of these article
and there seems to be nothing so well abb
to bear the burden without hardship
any portion of the people. But on
present tariff laws-the vicious, iniquitou
and illogical source of unnecessary taxa
tion-ought to be at once revised an
amended. These laws, as their primary an